• Market Watch

2025 SONA: Bottom-Up Economic Transformation for Shared Prosperity

• 12 Hours Ago - 2025-04-29 00:00:00

On the 24 April 2025, President Her Excellency Dr. Netumbo Ndemupelila Nandi-Ndaitwah of the Republic of Namibia delivered her first State of the Nation Address (SONA), emphasizing "Unity in Diversity, Natural Resources Beneficiation, and Youth Empowerment for Sustainable Development." She outlined the administration's
goals and strategies for an array of the economy.

In the SONA, the president outlines the targets for the year, the current state and achievements of the economy, and plans for implementation. In addition to highlighting important challenges and transformative initiatives, her 2025 State of the Nation Address outlined eight key economic enablers and seven priority areas that must drive the socio-economic transformation her administration is committed to delivering over the next five years.

By putting these policies into place, the government intends to make agriculture a source of income, self-reliance, and opportunities for youth. The president also boldly decided to provide free university education in Namibia starting in 2026 as part of broader efforts to empower young people and fight unemployment. As infrastructure development is always the first step to creating more jobs, we must commend the president for her plans to invest in the energy industry. Both the business climate and Namibians' quality of life will be enhanced by these initiatives. In order to boost economic activity and improve the living conditions of Namibians, the president's decision to address the country's unemployment issues and restore economic growth and prosperity was hailed. Economic growth and job prospects for Namibians could be stimulated by the president's actions to assist the growth of the private sector, particularly in the crucial economic enablers.

It is crucial to realize that the SONA, which offers an in-depth understanding of the country's present situation and future course, touches on a number of important subjects, such as economic policy, social issues, foreign relations, national security, sustainability, infrastructure development, public sentiment, legislative agenda, involvement in the community, and historical background.

Furthermore, this is an important move in the right direction for ending the cycle of poverty, addressing young unemployment, and raising Namibia's literacy rate. It is crucial to keep in mind, though, that providing free higher education necessitates large cuts to government spending in other equally important areas that support the growth of the economy. The decision made by H.E. Dr. Netumbo to assist students whose parents are unable to pay for their education is crucial and vital. With respect to operational budgeting contained within public universities and vocational trainings, there have been varying reactions to free higher education.

While I support free tertiary education as a system, I have doubts about its viability in the long run. In an economy that is only beginning to recover and is extremely vulnerable owing to global market volatility, implementing free higher education will have a number of detrimental repercussions and put further financial strain on taxpayers. Free higher education could lead to a decline in the quality of education. This is due to the possibility that private universities have greater financial and resource access than the government. The value of a degree may thus decrease as a result of the potential compromise in educational quality. If universities charge students whose parents can afford the fees, they will be able to preserve their reputation, standards, and quality of education. Because of their stable income, they will also
be able to attract highly qualified educators.

I recommend that in order to maintain sustainability and collaborate with the government, students whose parents work should be obliged to pay at least half of their tuition at universities and vocational schools rather than receiving free education. By offering free tertiary education to students from economically disadvantaged households or marginalized groups who might not be able to afford tuition, the inequity gap can be closed. Free higher education can be helpful if it is part of a robust set of access-related policies, but
it is not a guarantee of progress and can even work against the system because, despite the country having more degree holders, there may be fewer job prospects. An additional approach that will help graduates, universities, and technical institutions is to substantially decrease corporate taxes for companies willing to
hire and train fresh graduates.

In addition, despite the president's impressive vision for a sustainable and inclusive Namibia, the focus on social justice and disability issues indicates that inclusive governance has not been addressed, leaving people with disabilities wondering how they will be empowered in a manner similar to that of women and youth. The position of people with disabilities remains a major problem since they are not sufficiently represented or dealt with. Therefore, H.E Dr. Netumbo Nandi-Ndaitwah's plans require a significant financial investment, efficient governance, and private-sector collaboration areas in which Namibia has had difficulties in the past. These high expectations could be jeopardised by corruption, inefficient bureaucracy, and unclear policies.

Given Namibia's financial challenges and climate-related issues, sustainability is now a need rather than an option. The address given by the president represents a positive move. The
government may improve its ability to handle urgent national concerns and promote a better future for all Namibians by putting the recommended ideas into practice.
To succeed, these efforts will require strong governance, long-term financial stability, and decisive action. Attracting international investment and companies has a discernible multiplier effect. To diversify and reduce its dependency on mining, Namibia must make a concerted effort to establish a business-friendly climate and put policies in place that make doing business more convenient. The development of Namibia's economy requires a consistent goal, visionary leadership, and swift action. Through export diversification,
workforce development, energy sector modernization, and industrial innovation, Namibia may achieve long- term growth and become a competitive player in the global economy.

In conclusion, in order to prevent the same mistakes, such as the nation's poor track record of policy execution, H.E. Dr. Netumbo should hold her cabinets accountable.
Therefore, it is obvious that political stability, citizen participation, business sector cooperation, and policy implementation will all be critical to the government's success. Namibia might experience a historic rebirth if these conditions are met, and President Netumbo has an opportunity to salvage the country's economy during her leadership and leave a lasting legacy.